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Arthur Hayes warns of crypto DUMP in early 2025
By Davide Grammatica
Donald Trump's inauguration into the White House could coincide with a sharp correction in the crypto market, according to Arthur Hayes
Too many expectations of the Trump government?
Former BitMEX CEO Arthur Hayes, warned the crypto community about the consequences of Donald Trump taking office in the White House next January.
Expectations about the new U.S. government are high. The Republican candidate’s victory has boosted Bitcoin back above the $100k mark, and as a result everything else in the sector has moved upward through the end of 2024.
However, according to Hayes, a landmark in the crypto community, the risks of going into a sharp correction are many, starting with the fact that high expectations in the regulatory arena may not be reflected in reality.
Or at least, the newly elected president’s intentions may not be realized in the short term. “The market will come up against the reality that Trump will have little time to implement any concrete policy change,” Hayes wrote. “This realization will lead to a fierce sell-off in cryptocurrencies and a sharp correction in the stock market more akin to the figure of the president.”
The “danger” of the Trump inauguration
Indeed, a drastic change in the regulation of cryptocurrencies is expected, and this belief was born out by Trump’s words, “we will do great things with crypto.” Playing against it, however, is the time factor. According to Hayes, “solving the underlying domestic and international problems to the crypto sector takes policymakers more than a decade, not just a year.” For this reason, investors should also prepare for a bearish movement that will arise from a sentiment of “buyer’s disappointment.”
From January 20, 2025, in this sense, the crypto market could face a real “crash”, and Hayes himself says he is intent on reducing his holdings before this date.
At the same time, it is Hayes himself who points out how the prediction could be belied by the bullish sentiment of more bullish investors. Only at the time of Trump’s inauguration, therefore, will it be possible to see what direction the markets intend to take.
